As a result of a breach of a covenant under our credit facilities in the fourth quarter, the Company entered
into a tolerance letter with its lenders in the fourth quarter, which restricts us from using the revolver portion
of the facilities, under which no amount is currently outstanding. At year-end, the Company had $38 million
of cash and cash equivalents and no amounts drawn from the revolver. Goodfood is in the process of
pursuing a revised credit facility arrangement. There can be no assurance as to such an arrangement being
put in place and in a timely manner, or the terms of such an arrangement.
But there is more:
As a result, we are announcing that we have or will be closing all our MFCs
and the shut down of our wider 30-minute on-demand offering.
So, apparently on-demand groceries are not in the plans for long-term growth any more.
Management was telling a completely different story at the beginning of 2022.
FOOD is left with just 2 distribution centers, C$38M in cash, and they are about to lose lots of customers.
Inflation is high, interest rates are rising… Bankruptcy is the most likely outcome for Goodfood Market.